"This fund has the broadest mandate of any of the Thornburg municipal bond funds, which allows the fund to "go where the value is." We leverage our focus on fundamental, bottom-up credit analysis — a skill long ignored by the municipal bond market but now back in favor — to take advantage of these opportunities. The fund does not have the classic Thornburg "laddered" structure, and this allows it to take advantage of opportunities offered further out the yield curve. Think of the fund as a general municipal bond fund with the capability of exploiting a greater number of opportunities provided by the markets."
— Chris Ryon
The strategy is defined by its flexibility. We have the ability to invest anywhere along the yield curve, depending upon our perception of where the greatest relative value for a given level of risk lies. Terms range from overnight to around 40 years.
We also enjoy the flexibility to invest anywhere along the credit spectrum and can place up to 50% of the portfolio in non-investment-grade bonds.
The fund is managed opportunistically, with the aim of capturing the most compelling opportunities the markets have to offer.
We employ the same fundamental, bottom-up research and the same buy/sell discipline as do the Thornburg core bond funds — with a dip further down the credit spectrum.
The $308 million strategy holds about 222 positions as of 9/30/16. A smaller number of issuers mandates a rigorous degree of credit research to which Thornburg Investment Management is uniquely equipped to conduct.
The portfolio is currently positioned in mostly investment-grade bonds, see the portfolio tab above for the current credit quality breakdown.
With the flexibility to invest anywhere along the yield curve and anywhere along the credit spectrum, the fund has the ability to capture a broader set of opportunities than some general municipal funds, which may be more restricted in their investment universe. While we enjoy that flexibility, we do not abandon credit work in pursuit of yield.